(Ted Houston, KFYI News) Home prices continue their upward climb in the Phoenix area, according to a new report from the WP Carey School of Business at Arizona State University.
The report shows the median single-family home price was $175,000 in March, about a 30-percent increase from a year earlier. The median price of a townhouse/condo jumped even more – 43 percent – from $81,000 to $116,000 in the past year.
The report also says the supply of homes for sale continues to fall, due mostly to a large drop in the number of foreclosure homes on the market.
Phoenix-area home prices have rebounded from their low point in September, 2011.
Author of the report, Mike Orr, who is director of the Center for Real Estate Theory and Practice at the business school, says the culprit in the rapid rise in real estate values isn't high demand.
"The low number of sellers is what's unusual, not the number of buyers, which is only slightly above normal," he says. "Higher prices would normally encourage more ordinary home sellers into the market, but many are either locked into their homes because of negative equity, or they're simply waiting for prices to go up more."